Life Time Group Holdings, Inc.

Scaled premium athletic-country-club operator with high-quality recurring revenue and above-average margins.

Strengths

• Operating margin 16% (81.6th pct), net margin 12.5% (76.9th), ROA 4.7% (77th), OCF margin 29% (85th)
• Differentiated, hard-to-replicate ~185-center premium franchise with sticky subscription revenue and 39-quarter cash runway

Risks

• Weak short-term liquidity (current ratio 0.63, quick 0.52, ~17th pct) and slightly negative free cash flow from heavy build-out capex
• Capital-intensive, cyclical discretionary model sensitive to macro/consumer pullbacks

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Cash burnNegative free cash flow (-21.0M)
• Weak liquidityCurrent ratio 0.63 (<1)
• Strong balance sheetStrong balance sheet — $205M cash & investments, ~39 quarters of runway